FAST FIVE: Rabobank: "All The Experts Who Were Mocking Trump Are Suddenly Quiet"
Submitted by Michael Every of Rabobank The latest on the trade war is that US President Trump claims he is personally standing in the way of a deal being done by insisting Beijing returns to the terms the US felt they had agreed a few months ago; the editor of China's Global Times has tweeted in response: “Will there be a breakthrough at the G20.
The small business half of the economy is leading the way, taking advantage of lower taxes and fewer regulations, and reinvesting in their businesses, their employees, and the economy as a whole.” No signs of any trade war strain there – presumably the Fed is looking at multinationals then as it now talks of the need to cut rates(?) On which front Trump came out swinging against the Fed again: “They don't have a clue!” he claimed in a tweet, knocking them for having raised rates too far and for undertaking Quantitative Tightening.
So, yes, it's easy to mock Trump for his misunderstanding over who pays US tariffs or whether the moon is part of Mars; but apart from that EUR admission above, all the experts who rolled their eyes and said you could never shift mobile-phone production out of China without prices hitting the roof, and at his “Don't hike.
In short, nothing is black and white – except that rates are heading lower and are staying there.
However, both have potentially enormous ramifications for us all.